Phivida Holdings Inc. (OTC: PHVAF) (CSE: VIDA) is proud to announce that it has entered into a brand licensing agreement with Nova Paths, LLC ("Nova Paths") to license Phivida's proprietary cannabidiol ("CBD") infused functional foods, beverages and clinical formulas. Nova Paths LLC is a manufacturing facility located in Portland, Oregon USA and is OLCC state licensed for the distribution of cannabinoid infused retail products.
Key terms of the agreement include a non-exclusive license of Phivida's proprietary formulas and trademarks for manufacturing and distribution within the state of Oregon. In exchange, Nova Paths will provide Phivida with a brand licensing unit fee due on every unit sold within the OLCC marketplace. Next steps in the process of launching Phivida branded CBD products through the Nova Paths licensing agreement is to adjust Phivida's product labels for Oregon state compliance and to submit these adjusted labels to the OLCC for approval.
Phivida intends to continue sourcing CBD hemp oil from state permitted hemp farms. The OLCC program was recently amended to include co-mingling of extracts from Oregon State Department of Agriculture permitted hemp farms. This policy shift provided an ideal platform for Phivida to license its CBD products to a reputable state licensed manufacturer and distributor like Nova Paths LLC. Oregon state also recently approved CBD to be packaged with alcoholic beverage products — providing the potential for Phivida to develop new cannabinoid infused beverage product innovations such as CBD infused beers and wines.
According to a recent sector report, the US market for hemp-derived CBD is growing at 55% per annum, and is now on pace to hit the $1 billion USD mark by 2020i. In the state of Oregon, total sales from more than 300 OLCC licensed retail locations was up to $365 million USD in 2016. As of the third quarter of 2017, Oregon was on pace to increase sales volumes in all cannabinoid infused categories by over 33% as the number of state licensed retail locations has grown to over 500.ii A recent local news report identified more OLCC licensed retail locations in the state of Oregon "than all of the Starbucks and the McDonalds locations, combined".
The CBD edibles category has led the medicinal cannabis market for years in the USA. The Oregon edibles market has grew by an estimated 104% from 2016 to 2017iii. In 2015, Leafly cited edibles as the most popular category of cannabinoid infused products across the USA, and the foundation of the most powerful brandsiv. In 2016, Hightimes published its top 10 edibles list, with cannabinoid infused beverages leading the packv.
"We are thrilled to license Phivida's unique portfolio of CBD-hemp oil infused products for the OLCC retail market," said Ash Gupte, CEO and President of Nova Paths. "Phivida is recognized as a premium CBD brand dedicated to quality which is an excellent fit with our own internal standards and serves a growing need for professional grade products among Oregon based consumers. We are excited to bring Phivida's high-quality CBD foods, beverages and clinical products to Oregonians – and we expect great success for the Phivida brand within the state, as cannabinoid infused functional beverages continue to grow in popularity."
"Following our distribution agreement to distribute across the state of California, launching into the Oregon market is the next logical step in our strategy to capture the US Pacific Coast market," said John-David Belfontaine, President and CEO of Phivida. "The Nova Path agreement also builds on local partnerships in Oregon, such as our sponsorship of the National University of Natural Medicine (NUNM) in Portland, where we will continue to serve the clinical marketplace through education, research, sponsorship and merchandising."
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